Posted inAsset Class in Focus

Asia ETFs attract $1.2bn in October

Exchange traded funds listed in Asia-Pacific racked up the fifth consecutive month of positive net inflows, according to research firm ETFGI.

“Equity markets performed well globally in October,” said Deborah Fuhr, managing partner at ETFGI. “Investors put net money into riskier assets including emerging market equities.”

The $1.2bn in October inflows (for Asia-Pacific ex-Japan) was largely into equity ETFs while fixed income ETFs had net outflows of $528m for the month.

For the year to the end of October, Japan also had a surge of capital into ETFs. Net inflows were $35bn, up 122% on the record set last year, the firm said.

In Hong Kong, the latest ETF expected to be launched November 11 is a smart beta product called the GARY ETF from Enhanced Investment Products and CLSA.

The product uses a growth-at-a-reasonable-yield strategy, requiring constituents to pass through a rules-based screening process to ensure a higher level of “tradability” for investors, according to a joint statement.

Nasdaq’s Rob Hughes recently told FSA that the firm intends to launch Nasdaq 100 ETFs in Hong Kong and Taiwan in the coming months. 

At the end of October, Asia Pacific ex-Japan had 904 listed ETFs and ETPs, with total assets of $119.4bn, ETFGI said.

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Largest net ETF/ETP inflows October 2015

  Net new inflows
Samsung Asset Management $379m
China Asset Management $232m
CSOP/China Southern $150m

 

Largest net ETF/ETP inflows year-to-date*

  Net new inflows
HSBC/Hang Seng $5.8bn
SPDR ETFs $2.5bn
CSOP/China Southern $1.6bn
 
Source: ETFGI. Data for Asia-listed ETFs, ex-Japan. *Year-to-date is to end of October 2015

Part of the Mark Allen Group.